the stay does NOT prevent the mere recordation of a mechanic’s lien (11 USC sec. 362(b)(3)); and,

in addition to recording the mechanic’s lien, the mechanic’s lien claimant MUST file a notice of lien in the bankruptcy (11 USC sec. 546(b)(2)) so that it will not be subject to avoidance by the bankruptcy trustee.

The good news for the mechanic’s lien claimant’s counsel in this case is that, while he had misspoken in the trial court when opposing the defendants’ demurrer, he had presented the facts that showed that he’d filed suit in a timely fashion, thereby preserving his client’s right to the mechanic’s lien. So, he lives to fight another day, as this case did not adjudicate the merits, i.e., whether the lien claimant would actually prevail at trial.

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Great and informative article on California mechanics liens and bankruptcy. For more information on California mechanics liens and California preliminary notice requirements, take a look at a great resource at http:lienitnow.com/california-faq.asp

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This blog is intended to provide the reader with general information regarding current legal issues. It is not to be construed as specific legal advice, does not form an attorney client relationship, and is not a substitute for the need to seek advice from an attorney on specific legal matters.